Financial Services UK

Blowback From Name And Shame Plan Hurts FCA Credibility

An embarrassing rebuke for the City watchdog's controversial proposal to "name and shame" companies under investigation for financial misconduct at an early stage has undermined its regulatory credibility as well as efforts to boost London's competitiveness as a financial center.

FCA's 2024 Consumer Focus Still Has Firms Guessing

The Financial Conduct Authority shifted further toward results-based financial regulation in 2024 by requiring regulated companies to comply better with its Consumer Duty, forcing managers to make individual interpretations of the regime's often ambiguous requirements where more specific rules are missing.

Experts See Risks In FCA's Soft-Touch Response To AI

The Financial Conduct Authority has so far failed to detail its rules on artificial intelligence and is moving toward a reliance on companies to self-report, putting it at risk of deferring excessively to the sector it regulates, legal experts say.

FCA's Investigation Regime May Tarnish Unnamed Individuals

Financial Conduct Authority proposals to name companies early in investigations will damage the careers of many individuals involved, according to lawyers, with some unnamed employees coming under suspicion that puts them at risk of losing their jobs.

February 10, 2025
Ombudsman To Charge Claims Firms For Dispute Referrals

The Financial Ombudsman Service has said that it will impose a charge on claims companies for referring disputes as it attempts to deal with a surging caseload.
February 07, 2025
Pharmacy Chain Says Seller Inflated Value In £10M M&A Deal

A Yorkshire-based pharmacy chain has brought a £9.9 million ($12.3 million) claim in a London court against the previous owners of a group of pharmacy companies it acquired, alleging they made dishonest statements about the group's finances.
February 07, 2025
Quantum Computers 'Imminent Threat' To Data, Europol Says

The financial sector faces an "imminent threat" that coded security measures to protect data could be broken by advanced computers and companies must start transitioning to more secure defenses now, a European Union law enforcement agency warned Friday.
February 07, 2025
FCA Doubles Withdrawals, Changes To Misleading Ads In 2024

The Financial Conduct Authority said Friday its interventions led to authorized businesses withdrawing or amending 19,766 misleading advertisements in 2024 — up from 10,008 the previous year.
February 07, 2025
HSBC Seeks To Quash Discrimination, Whistleblowing Claim

HSBC urged the Employment Tribunal on Friday to toss out a claim from a former compliance manager for disability discrimination, harassment and unfair dismissal against the bank, saying her claims had no real prospect of success and should not be allowed to move to a hearing.
February 07, 2025
UK Litigation Roundup: Here's What You Missed In London

This past week in London has seen Investec Bank PLC sue two diamond tycoons, London florist Nikki Tibbles file a claim against an "imitator company," a direct descendant of the Cartier family launch a claim, and a Coronation Street actor hit footballer Joe Bunney with a defamation claim. Here, Law360 looks at these and other new claims in the U.K.
February 07, 2025
Investor Can Sue Trading Brokerage For $4M Debt In England

An investor can bring claims against a Dubai-based trading brokerage in England, over her allegations that it sold its clients to a consultancy to avoid paying her the remainder of a $4.1 million debt, after a ruling by a London court on Friday.
February 07, 2025
Danske Bank To Buy Back $695M Worth Of Shares

Danske Bank said on Friday that it will reward shareholders with a share repurchase program of up to five billion Danish kroner ($695 million) as it reported a bumper annual pre-tax profit for 2024.
February 07, 2025
EU Finance Watchdog Seeks Ways To Ease Reporting Burden

The European Securities and Markets Authority unveiled plans on Friday to streamline and reduce the reporting burden for the financial sector as it aims to cut down on costs and complexity.
February 07, 2025
Pension Plans Urged To Eye Bulk Annuity Sustainability

The U.K. retirement savings watchdog has told pension trustees to weigh sustainability guidelines when they enter into a bulk annuity deal.
February 06, 2025
Ex-Bank Exec Fired For Hotel Spend Can't Sue CEO, GC

A Manchester bank's former chief commercial officer can't revive her claims against the chief executive officer and two other senior officials after already agreeing to withdraw them, an employment tribunal has ruled.
February 06, 2025
Allianz UK Detects £157M 'Record' Level Of Fraud In 2024

Allianz UK on Thursday said it uncovered a total of £157.24 million ($195.94 million) worth of insurance fraud in 2024 — a 10% year-on-year increase in part driven by the rising cost of living increasing the number of consumers turning to scams.
February 06, 2025
Wine Biz CFO Fights US Extradition Over Alleged $99M Fraud

A wine company's former chief financial officer accused of cheating investors out of $99 million by persuading them to make interest-bearing loans using valuable wine collections as collateral urged a London judge Thursday to overturn a decision to allow his extradition to the United States.
February 06, 2025
Energy Trader Faked Illness When Quitting For Rival

An energy trading company has won its breach of contract claim against a former employee who quit to work for a rival, after a court concluded that he used sickness as a "ruse" to avoid working during a noncompete restriction period.
February 06, 2025
Mastercard Deal Battle Goes Through The Looking Glass

The landmark class action brought by Walter Merricks against Mastercard has entered "Alice in Wonderland" territory, as the credit card giant is now backing the class representative who sued it in his dispute with his litigation funder over the terms of the controversial settlement, analysts say.
February 06, 2025
Pension Funds Warned Of Impact Of Global Trade War

Pension providers should consider the potential impact on their funding levels of a global trade war in the coming months, a consultancy warned Thursday.
February 06, 2025
FCA Rejects Complaints On Handling Of Blackmore Collapse

The Financial Conduct Authority said Thursday that it has written to thousands of investors to reject complaints about how it handled the case of Blackmore Bond PLC, a minibonds provider that collapsed in 2021, but has agreed to pay them compensation for its slow response.
February 05, 2025
FCA Told To Shelve Controversial Investigation Plans

The Financial Conduct Authority should not go ahead with controversial plans to name firms under investigation at an earlier stage unless it can ensure the proposals sufficiently balance increased transparency and managing the potential risks to firms, a House of Lords committee said Thursday.
February 05, 2025
EU Guidance Clarifies AI Rules, But Key Concepts Lack Detail

Lawyers broadly welcomed the European Commission's belated guidance on newly enforced laws banning so-called artificial intelligence systems that pose an unacceptable risk Wednesday, but are wary of provisions regarding how AI providers should crack down on the prohibited use of their systems.
February 05, 2025
Tycoon Can Redo Confiscation Fight After Fraud Conviction

A businessman imprisoned for eight years for failing to repay £4.5 million ($5.6 million) following a conviction for fraud can re-argue his case after the Court of Appeal said Wednesday that there is new evidence he might be serving longer than necessary.
February 05, 2025
Audit Watchdog Seeks Rules For Sustainability Opinions

Britain's accounting regulator called Wednesday for the regulation of sustainability assurance reports by auditors and others to iron out current inconsistencies in quality.
February 05, 2025
Santander Plans €10B In Share Buybacks Over Two Years

Banco Santander SA said Wednesday that it plans to reward investors with a €10 billion ($10.4 billion) share buyback that will be completed by the end of 2026, beginning with a first chunk of €1.6 billion.
February 05, 2025
Construction Industry Insiders Get Prison For £22M Tax Fraud

A group of seven construction industry insiders has been sentenced to between nine years and four months and two years in prison for their roles in a tax fraud in which an estimated £22 million ($28 million) was hidden from the U.K. tax authorities.
February 04, 2025
Barclays Poised To Slash Former Staffer's Racism Claims

Barclays has won a key decision as it looks to beat a former employee's race discrimination case, convincing a tribunal that he brought the vast majority of his claims too late.
February 04, 2025
UniCredit Bids To Undo Ruling Blocking Gazprom Unit's Claim

UniCredit Bank AG urged an appeals court Tuesday to overturn an order blocking a Gazprom joint venture from bringing a €450 million ($467 million) claim against it in Russia under bond guarantees linked to an aborted gas plant project.

Editor's Picks

UK Draft Pay Fraud Rules Open Tricky Legal Liabilities

The government's new draft legislation, which will give banks longer to investigate suspicions of fraud before they send payments instructed by customers, will create a wave of new legal liabilities and lead to regulatory hurdles, according to lawyers.
FCA Fires Warning Shot Over City's Consumer Duty Failings

The Financial Conduct Authority has sent out a fresh warning to financial services companies highlighting how some of them are failing to comply with its Consumer Duty regime. But experts have told Law360 that the expectations are unclear.
5 Questions for Osborne Clarke Partner Nick Price

The Payment Systems Regulator is due to start forcing payment firms to reimburse victims of scams who have been tricked by a fraudster into transferring them money. Here, Law360 talks to Osborne Clarke partner Nick Price about how this new regime could mean uncertainty about compliance.

Expert Analysis

What To Expect As CAT Considers Mastercard Settlement

It is expected that the Competition Appeal Tribunal will closely scrutinize the proposed collective settlement in Merricks v. Mastercard, including the role of the case’s litigation funder, as the CAT's past approach to such cases shows it does not treat the process as a rubber stamp exercise, say lawyers at BCLP.
Managing Transatlantic Antitrust Investigations And Litigation

As transatlantic competition regulators cooperate more closely and European antitrust investigations increasingly spark follow-up civil suits in the U.S., companies must understand how to simultaneously juggle high-stakes multigovernment investigations and manage the risks of expensive new claims across jurisdictions, say lawyers at Paul Weiss.
What 2025 Holds For UK, EU Restructuring And Insolvency

European Union and U.K. restructuring developments in 2024, with a new era of director accountability, the use of cramdown tools and the emergence of aggressive liability management exercises, mean greater consideration of creditors' interests and earlier engagement in restructuring discussions can be expected this year, says Inga West at Ashurst.
What To Know As EU Urges Outbound Investment Reviews

A recent European Commission recommendation urges European Union member states to review outbound investments in certain critical technologies sectors, but does not clarify the next steps for states once information on relevant transactions in third countries is received, say lawyers at Cleary.
Despite Divisive Political Rhetoric, DEI Is Alive And Well

The World Economic Forum's recent finding that DEI initiatives have continued to rise amid political headwinds raises the question of whether reports of the death of DEI are exaggerated, especially as employers must focus on new pay gap reporting obligations in the U.K. and Europe, say lawyers at Herbert Smith Freehills.
How GCs Can Protect Cos. From Geopolitical Headwinds

Geopolitical uncertainty is perceived by corporate leaders as the biggest short-term threat to global business, but many of the potential crises are navigable if general counsel focus on what is being said about a company and what the company is doing, says Juliet Young at Schillings.
Navigating PRA's Data Request For Crypto-Asset Exposure

The Prudential Regulation Authority’s recent data request for details on financial institutions' crypto-asset exposures should be used as an opportunity for firms to update their compliance procedures, and consider the future use of crypto-assets and related services, says James Wickes at RPC.
Key Points From FCA Financial Crime Guide Updates

The Financial Conduct Authority’s recent updates to its financial crime guide reflect the regulator’s learnings on sanctions following Russia's invasion of Ukraine, highlighting and clarifying consumer duty, anti-money laundering and other compliance expectations, say lawyers at Womble Bond.
Tax Directive Marks Milestone In Harmonizing EU System

The Council of the European Union’s recently adopted tax directive is a significant step toward streamlining and modernizing procedures for member states, and will greatly reduce administrative burden and compliance costs for cross-border investors, says Martin Phelan at Simmons & Simmons.
Why Nonfinancial Misconduct Should Be On Firms' Radar

Following a recent Financial Conduct Authority survey showing an increase in nonfinancial misconduct, the regulator has made clear that it expects firms to have systems in place to identify and mitigate risks, says Charlotte Pope-Williams at 3 Hare Court.
What New UK Code Of Conduct Will Mean For Directors

The Institute of Directors’ new voluntary code of conduct is intended to help directors make better decisions and enable U.K. businesses to win back eroded public trust, although, with no formal means of enforcement, its effectiveness could be limited, says Sarah Turner at Eversheds Sutherland.
Russian Bankruptcy Ruling Shows Importance Of Jurisdiction

The U.K. Supreme Court's recent decision not to assist a Russian receiver in Kireeva v. Bedzhamov will be of particular interest in cross-border insolvency proceedings, where attention must be paid to assets outside the jurisdiction, and to creditors, who must consider carefully where to apply for a bankruptcy order, say lawyers at McDermott.
Decoding Arbitral Disputes: UK Awards Versus EU Judgments

The Court of Appeal of England and Wales' recent refusal to enforce a €855 million Spanish judgment inconsistent with earlier binding arbitral awards in England provides crucial guidance for practitioners navigating the complexities of cross-border disputes involving arbitration agreements and sovereign states, says Josep Galvez at 4-5 Gray's Inn.
How Listing Act Measures Will Modernize EU Capital Markets

The new European Union Listing Act, in line with the capital markets union initiative, aims to simplify market access for small and midsize enterprises, laying a foundation for a more integrated framework and representing a modernization milestone, say lawyers at Cleary.
Insider Info Compliance Highlights From New FCA Guidance

The Financial Conduct Authority's recent guidance to companies on identifying inside information clarifies the regulator's expectation of case-by-case assessment, helpfully highlighting that abuse of U.K.-regulated markets can arise earlier than some might think, say lawyers at Sullivan & Cromwell.